Abu Dhabi’s Alef Education Holding has announced it will carry out the UAE’s third initial public offering (IPO) of 2024 after Spinneys and Parkin, and the first in the Abu Dhabi Securities Exchange (ADX).
The AI education platform will offer r1.4 billion shares in its listing, equivalent to 20% of the company’s total equity capital. Alef Education expects to pay a minimum dividend payout ratio of 90% of the net profit generated during 2024 and 2025, the company revealed.
The group provides digital educational resources to all public and many UAE private schools. It has a 100% penetration rate among Grades 5-8 and Grades 9-12 public schools and serves between 40% and 50% of the private school market in the UAE.
“The global edtech market has experienced exponential growth over the last couple of years, supported by increased government spending and initiatives to leverage digital and AI tools to transform the way that education is delivered and students learn,” said Abdulhamid Mohammed Saeed Alahmadi, Chairman of Alef Education.
“We have been – and will continue to be – both a proponent and beneficiary of this growing trend, which has helped fuel the growth and expansion of our business.”
Alef Education Holding is indirectly majority-owned by Abu Dhabi Capital Group (ADCG), one of the largest institutional investors in the Middle East. The shares to be offered via the IPO represent those held by Tech Nova Investment – Sole Proprietorship llc and Kryptonite Investments LLC, the company said.
Alef added the company will not receive proceeds from the offering.
The final offering price will be determined through a bookbuilding period to be held between May 28 and June 5, with shares expected to start trading on June 12.
